Corporate, Featured and Exclusive, Property - May 13, 2015

1MDB sells RM665 mil land linked to Tabung Haji

By Khairul Khalid

Mulia Group Logo1MDB has sold land at the Tun Razak Exchange (TRX) for RM665 million to Indonesian developer Mulia Group. The land was previously linked to Tabung Haji as a potential buyer.

The deal is to develop an office building called Signature Tower. Last week, documents were leaked detailing Tabung Haji’s proposed purchase of two parcels of 1MDB’s TRX land, worth a combined RM772 million that included the Signature Tower project for RM578 million or RM3,900 per square feet.

Despite initial denials, the pilgrim fund subsequently confirmed the TRX land purchase worth RM188 million but it did not include the Signature Tower project. According to 1MDB RE, the Signature Tower will be TRX’s tallest building with Prime Grade A office space.

“We are pleased to have the Mulia Group on board towards realising the potential of the Tun Razak Exchange. This significant investment underscores foreign investor confidence in Malaysia,” said Azmar Talib, chief executive officer (CEO) of 1MDB Real Estate Sdn Bhd (1MDB RE), the master developer of TRX.

The Mulia Group projects include premium commercial properties in Jakarta. It developed, owns and manages seven premier office buildings in Jakarta’s central business district, including the Wisma Mulia 1 and 2. It has also developed and managed internationally renowned hotels, and residential and shopping mall properties.

“As one of the biggest commercial property developers in Indonesia, we are excited to be embarking on this project to develop the Signature Tower to become the new landmark of Kuala Lumpur city. Our Mulia Group wishes to be an integral part of this iconic state-of-the-art development not only for Malaysia but for the region and beyond.

We see TRX’s potential to further develop the city’s role as a financial capital, and the Tun Razak Exchange aids our growth and expansion plans. I am committed to personally seeing this project through, drawing from our vast experience,” said Eka Tjandranegara, president director and owner of the Mulia Group.